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Macro hedge funds add bets yen will strengthen past JPY150
Dollar-yen options volume has shifted toward puts, with CME data showing November activity at a JPY142.86 strike and put volumes more than three times calls into 2026.
Macro hedge funds are increasing bets that the yen will strengthen beyond JPY150 per dollar by the end of the year, with some longer-dated options positions targeting a move toward JPY140, Bloomberg reported. The build is concentrated in dollar-yen downside protection, according to CME Group data cited by Hedgeweek.
On Tuesday, the most actively traded dollar-yen option was a November put with a JPY142.86 strike, Hedgeweek reported. Across contracts expiring before the end of 2026, put volumes were more than three times those of calls, underscoring investor demand for positions that benefit from a stronger yen.
Dollar-yen was trading around JPY153.47 on Wednesday, down 0.3% by late morning in Hong Kong. Hedgeweek said the yen’s strengthening case gained support after it held up despite a stronger-than-expected US payrolls report.
Hedgeweek also pointed to recent drivers of the move, including unwinds in yen-funded carry trades and acceleration after hawkish comments from Bank of Japan Governor Kazuo Ueda and board member Hajime Takata. The article noted that after dollar-yen broke below JPY155, a level that had acted as key support despite earlier Japanese market intervention, Nomura saw demand rise for options protecting against a weaker dollar, with short positions building after the JPY155 level was breached.